Coinbase Revives Stablecoin Fund to Boost USDC in DeFi

Coinbase is relaunching its Stablecoin Bootstrap Fund first launched in 2019 to enhance the liquidity of the stablecoin USDC in a variety of widespread and rising decentralized finance protocols.

Coinbase said on Tuesday its first placements will present USDC (USDC) liquidity into Ethereum-based lenders Aave and Morpho, and Solana-based buying and selling platforms Kamino and Jupiter.

“As we scale the fund over time and distribute liquidity throughout extra protocols and stablecoins, we’re notably keen to collaborate with pre-launch groups or these looking for to drive stablecoin development from day one,” it added.

The deployments might be managed by Coinbase Asset Administration and are designed to guarantee customers can “entry dependable charges throughout mature and rising protocols,” Coinbase stated.

Coinbase didn’t disclose the scale of the fund. Cointelegraph contacted Coinbase for remark.

Coinbase helped create USDC alongside its issuer, Circle Web Group, however continues to be key to its ecosystem. Tether (USDT) dominates stablecoin quantity throughout the crypto ecosystem, with an over $100 billion lead on USDC’s market capitalization, and Coinbase’s bid to enhance USDC’s liquidity in DeFi might appeal to extra crypto merchants and debtors to the token.

Complete worth locked in DeFi protocols at present sits at $165.4 billion, led by Aave and Ether (ETH) liquid staking protocol Lido at $41 billion and $40.8 billion, DeFiLlama data reveals.

Blue chip DeFi protocols profit from Coinbase’s first fund

The revival of Coinbase Stablecoin Bootstrap Fund comes six years after it was first introduced in September 2019 to help Ethereum-based DeFi protocols comparable to Uniswap, Compound and dYdX with USDC liquidity.

The primary of these funds deployed $1 million every to Compound and dYdX, which helped pave the best way for USDC to develop into a preferred stablecoin in DeFi after only launching a year earlier.

USDC now holds a market cap of $65.6 billion, trailing USDT at $164.6 billion, CoinGecko data reveals.

Like most stablecoins, USDC is supported on a number of blockchains, together with Ethereum, Base, Solana, Polygon, Aptos, Avalanche and Sui.

Coinbase’s whole income down, however stablecoin income up

It comes as Coinbase reported $1.5 billion in revenue for the second quarter,  falling in need of trade expectations of $1.56 billion to $1.59 billion. 

Associated: Coinbase partners with Perplexity AI for real-time crypto prices

Nevertheless, whereas income fell 26% from the earlier quarter, its stablecoin-related income — primarily by way of USDC — rose 12% to $332 million.

Coinbase goals to be an “every thing app”

Coinbase is aiming to launch a “tremendous app” after rebranding its Coinbase Wallet to “Base app” on July 16, which the trade stated was to evolve it “from a pockets into an every thing app that brings collectively social, apps, chat, funds, and buying and selling.”

The app will purpose to “increase financial freedom, creativity, and innovation,” Head of product for Base app, John Granata, stated, including that it might be a place to begin for a brand new sort of social community.

The app continues to be in the beta stage.

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